Tag Archives: safe haven

Gold prices (GLD, quote) in China are at an unreasonable level according to China’s largest gold producer, while prices fell in India, New York and London thanks to uncertainty over America’s fiscal cliff negotiations.

The fallout from the FOMC meeting has been felt far and wide since the statement. The clear winner has been the U.S. dollar with the dollar index climbing nearly 1% to 82.40 today. Traders have shifted gears from risk-on to a clear risk-off sentiment as fear continues to run rampant throughout markets.

Gold is moving higher for the second day in a row today, driven by headlines from Spain and the looming Greek elections on Sunday. Gold bugs are focusing on a series of comments out of the euro zone, starting with IMF comments on Monday that gold is still a good safe haven.

Overnight most markets carried forward the pain of risk-off trading on renewed worries of Spain and Greece, and now Italy too. Spain and Italy’s bond yields surged once again as both countries attempt to sell their debt on the open market.